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Colden Enterprises manufactures one of the components used to assemble its main company product. Spedasty Products, inc, has oflered to make the component at a

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Colden Enterprises manufactures one of the components used to assemble its main company product. Spedasty Products, inc, has oflered to make the component at a cost of $12.50 per unit. Colden Enterprises' current cost is $18.00 per unit of the component, based on the 85,000 components that Colden Enterprises currenty produces. Fiead the reavinements. This current cost per unit is based on the following calculations: IIII (Click the icon to view the information) None of Colden Enterprises' fred costs will be eiminated if the component is outsourced. However, the freod capacty could be used to buidd a new product. This new product would be expected to generaso $27,000 of contrbution margin per year. Requirement 1. If Colden Enterponses outsources the manufacturing of the component, will operating income increase or decrease? By how much? (Enser a "Or for any zero balances. Use a minus sign or parentheses in the DMerence column when the cout is make excepds the cost to buy) Requirements 1. If Colden Enterphses outsources the manutacturing of the component, wa operating income incresse or decrease? By how much? 2. What is the maximum price per uni Colden Enterprises would bo willimg to pay if it allsources be componem? Data table Direct material per unit Direct labor per unit Variable manutacturing overhead per unit Ficed manutacturing overthead per unit ... Total mansfacturing costs per unit

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